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  • Exam Name: Managing Contractual Risk
  • Last Update: 19-Apr-2024
  • Questions and Answers: 120
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L5M3 Questions and Answers

Question # 1

Which of the following situations would be considered a minor breach of a contract? Select TWO:

A.

a painter is contracted to paint a room white but paints it magnolia as there was no white paint available

B.

a consultant has given bad advice

C.

a zoo orders three baby lions and is given three baby tigers

D.

a supplier has breached a non-disclosure agreement

E.

A supplier delivers a lorry-load of produce six hours late due to a burst tyre.

Question # 2

Which of the following will you put into box 8?

A.

Mediation

B.

Arbitration

C.

Litigation

D.

Negotiation

Question # 3

Which of the following will you put into box 1?

A.

subcontracting

B.

reputational damage

C.

penalty clause

D.

consequential loss

Question # 4

Mark is a consultant who works with building managers and advises them on how to make their buildings safer. What type of insurance should Mark have?

A.

Public Liability

B.

Product Liability

C.

Professional Indemnity

D.

Property Insurance

Question # 5

Tutu Incorporated has a contract with a software company to provide their IT software. They want to ensure that the supplier pays compensation if there are any issues with service (e.g. the software doesn't work for a day). Which two items would Tutu Incorporated need to include in the contract?

A.

unliquidated damages

B.

letter of credit

C.

service level agreement

D.

service credit

E.

insurance

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